of Economic Projections (SEP)," the Fed Chair (currently Jerome Powell) holds a press conference. This provides more context and answers to questions from journalists.
* Meeting Minutes: Approximately three weeks after the policy decision, detailed minutes of the meeting are released. These minutes offer a more in-depth look into the discussions, disagreements, and perspectives of the Committee members regarding the economic outlook and the rationale behind their policy decisions.
Why are FOMC Meetings Important to Markets?
The FOMC's decisions and statements have a profound impact on financial markets globally because they influence:
* Interest Rates: Changes in the federal funds rate directly affect borrowing costs for consumers and businesses, impacting everything from housing to corporate investments.
* U.S. Dollar (USD) Value: If the Fed signals higher interest rates (a "hawkish" stance), the USD tends to strengthen as it becomes more attractive to investors seeking higher returns. Conversely, expectations of lower rates (a "dovish" stance) can weaken the dollar.
* Stock Market: Lower interest rates can make borrowing cheaper for companies, potentially boosting their profits and stock prices. Higher rates can slow economic growth and reduce corporate earnings, often leading to lower stock valuations.
* Bond Market: Bond yields are highly sensitive to interest rate expectations.
* Commodities (like Gold): Gold is often seen as a safe-haven asset, and its price can react inversely to the U.S. dollar and interest rates.
The Latest (as of June 17, 2025):
* The most recent FOMC meeting whose minutes have been released was May 6-7, 2025, with minutes released on May 28, 2025.
* The FOMC maintained the federal funds rate at 4.25%-4.50% at that meeting, continuing a pause in the interest-rate-cutting cycle that began in September 2024. They indicated increased uncertainty about the economic outlook and rising risks of higher unemployment and inflation.
* The current FOMC meeting is actually happening right now! It began today, June 17, and will conclude tomorrow, June 18, 2025.
* Market participants are keenly watching this meeting. While expectations are for the Fed to not cut interest rates at this particular meeting, the release of the "dot plot" (Summary of Economic Projections) will be crucial. This "dot plot" will show where each FOMC member expects the federal funds rate to be at the end of 2025, 2026, and beyond, providing vital clues about the future path of monetary policy. The policy statement and Fed Chair Powell's press conference tomorrow will be closely scrutinized for any hints of future rate cuts.
In summary, FOMC meetings are critical events for anyone involved in finance, as they provide the most direct insight into the U.S. central bank's economic outlook and future monetary policy intentions.
$BTC
Citations: [[1]](https://www.cmegroup.com/education/courses/understanding-stir-futures/understanding-the-fomc-report.html
